|Terra Luna: According to a Business Standard report, 98% of LUNA investors lost their life savings when the cryptocurrency crashed.|
A court in South Korea issued an arrest warrant for Do Kwon, the co-founder of Terra, on Wednesday, September 14. This is on the heels of a near breakdown of the Terra ecosystem last June. Do Kwon, who is also the CEO of Terraform Labs, a Singapore-based blockchain company, supervised the biggest crash in the crypto ecosystem earlier in the year.
The arrest warrant for the Terraform Labs CEO came as investors’ confidence was increasing after the Terra tokens started showing signs of recovery in recent weeks as the company worked behind the scenes to implement a series of governance decisions by the Terra decentralized autonomous organization (DAO).
Terra Luna: Warrant Issued for Do Kwon And 5 Others
According to a Bloomberg report, an arrest warrant was issued for Do Kwon, and five other members of the Terra team were indicted for breaching South Korean capital market laws.
Even though the sextet is located in Singapore, Do Kwon is a citizen of South Korea, and many citizens of the country invested in the Terra ecosystem.
Terraform Labs is the issuer of LUNA, the internal currency of the Terra ecosystem. The team is also behind Terra USD, an algorithmic stablecoin that owns the ticker (UST). UST, the Terra stablecoin depegged from the United States dollar in spite of assurances from the Terra team that the stablecoin stabilization mechanism could sustain UST. The loss of the dollar peg had a catastrophic effect on the Terra ecosystem in particular and the cryptocurrency market in general.
Terra Luna: 98% of Terra Investors Lost Life Savings
According to a Business Standard report, 98% of LUNA investors lost their life savings when the cryptocurrency crashed. Terraform Labs has since moved to revive the coin. Among the remedial measures employed by the company is the so-called Proposal 1623. The proposal passed by the Terra DAO resulted in the minting of a new version of UST and LUNA dubbed UST and LUNA, respectively. The older versions of the tokens were renamed USTC and LUNC.
Despite their best efforts, industry experts such as Binance CEO, Changpeng Zhao, were of the opinion that minting a token out of bankruptcy was impossible. According to CZ,
“You cannot mint your way out of bankruptcy.”
A Change in Strategy
After weeks of little success, the Terra team changed their approach and burned some tokens resulting in a measure of success. The LUNA Classic (LUNC) has been in the news in the past few weeks for a remarkable comeback. The token gained more than 100% within a week.
With the recent move to have Do Kwon arrested, Terra tokens are reacting to the news.
A Week of Losses for Terra
TradingView data shows that LUNC has lost 30% of its value in the last 5 days. The coin is currently exchanging hands at $0.0002884. The Terra blockchain stablecoin, USTC, is yet to recover its peg to the USD. The stablecoin is ranked 123 according to its market capitalization. Its current market price is $0.03505410.
A Wrong Business Model
Things are certainly not looking bright for the Terra ecosystem at the moment. This is the consequence of a business model that incorporated an algorithmic stablecoin with no built-in stabilization mechanism despite the best efforts of the market maker. This is why investors should be sure of their due diligence before putting their funds in a token. The loss incurred by LUNA investors is a testament to the necessity of investing in relatively secure tokens.
A Good Investment Option – TAMA
One such good investment option is TAMA, the Tamadoge token that is currently on presale. Tamadoge is a play-to-earn gaming metaverse that gives investors the opportunity to own a token that drives a metaverse ecosystem. With the increasing interest that players have in Game-Fi projects, there is no doubt that Tamadoge, just like other meme coins, would become an instant success. The fact that the project incorporates non-fungible tokens, which are still in demand, makes TAMA a good deal.
The information available on the Tamadoge website shows that the presale has already raised over $16 million since the presale opened. The presale has a maximum cap of $19 million. There is no doubt that investors are aware of the potential of this project and that the Tamadoge tokens will be sold out in the next few weeks.
In addition, there is an ongoing massive giveaway organized by Tamadoge’s development team. Visit Tamadoge $100k giveaway to find out how you can also benefit from this rewarding offer.
Note: Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Stocks or Crypto Coins. Please consult a registered investment advisor to guide you on your financial decisions.